I highly suggest you skip right to the end of module exercise (I only say this because you've taken DP). Even without DP, it's a joke compared to FAP.

Might skim some of the other stuff. Definitely not planning on wasting too much time with it. I took the first module and just from experience working that one was about as useful as a wet noodle when trying to hang yourself.

I've heard that you can't just bank on a certain number of points. They factor in a couple of other things. I guess each question is graded 1-10, and you have to pass a certain number of questions in comparison to other people.

I realize that this explanation is not very good, but that's what the proctors were saying at my exam. Perhaps someone else knows more about this.

I've heard that you can't just bank on a certain number of points. They factor in a couple of other things. I guess each question is graded 1-10, and you have to pass a certain number of questions in comparison to other people.

I realize that this explanation is not very good, but that's what the proctors were saying at my exam. Perhaps someone else knows more about this.

It would make sense that if you get all 60 points on 5 questions and 0 points on the other 60 possible questions, and you needed 60 to pass that they would consider that as not meeting minimum requirements. There is a reason we have to sit until July waiting for results.

I read through some of the grading methodology. I think that if you have a high number of points (no idea what that might be, 80+?) then you will pass. If you have a low number of points, then you fail. The middle ground will then get put back into the pot, and perhaps this is where you need to do well on more than a just a few questions comes in to play. Like, a 60 on 5 questions and 0 on everything else is not as good as a 60 on all questions. Again, I'm not sure...I never got the full story.

I read through some of the grading methodology. I think that if you have a high number of points (no idea what that might be, 80+?) then you will pass. If you have a low number of points, then you fail. The middle ground will then get put back into the pot, and perhaps this is where you need to do well on more than a just a few questions comes in to play. Like, a 60 on 5 questions and 0 on everything else is not as good as a 60 on all questions. Again, I'm not sure...I never got the full story.

Anyway, there was a question where you had to calculate the spread, explain its significance, and then explain the problems with a long duration portfolio. I figured that most of the 6 available pts would go to the latter two bullets, so here's what did:

-Gave the formula for spread, solved for the net yields for each asset type,
and then wrote: spread = (weighted average of asset yield - credited rate).

-I didn't have time to solve for the spread, so I went on and explained how the spread should be broken down, said that it's a source of profit, and explained disintermediation risk and liquidity risk. I also explained the spread in words.

According to the "Guide," I'd receive almost full credit for this response. I could have received additional credit by simply stating something like "assume junk bonds = 20%" even though I didn't solve for the wt. avg... that just seems silly